Green light for PZU to become the largest diversified financial services group of in Poland and the CEE

4 May 2017 — Daniela GHETU
On May 4, 2017, the Polish Financial Supervision Authority gave green light to the PZU and PFR's intention to purchase 32.8% of Bank Pekao S.A. from the UniCredit Group, the Polish insurer announced.

Under the deal, PZU will acquire about 20% of the shares and PFR - about 12.8%.

"We are pleased with the positive decision of the Polish Financial Supervision Authority, which was preceded by constructive cooperation with the office. Together with the PFR we will strive to close the deal as soon as possible, which will make PZU a financial giant in Central and Eastern Europe. Together with the management of Pekao, we will work to ensure that the synergies and opportunities that will unlock the transaction have been beneficial not only to the shareholders but also to the clients of both institutions, " said Pawel SUROWKA, President of PZU SA.

The KNF decision opens the way for a transaction signed on 8 December 2016. Its implementation will make PZU the largest group of diversified financial services in Poland and Central and Eastern Europe with a total balance sheet total of PLN 360 billion (including assets of PZU SA, Pekao SA and Alior Bank ). Thanks to the agreement, PZU will become the largest asset manager in Poland: TFI PZU, TFI Pioneer, PTE PZU and PTE Pioneer.

The acquisition of Bank Pekao shares is another step in the implementation of the PZU Group's 2020 strategy. PZU plans to build a banking group with assets of at least PLN 140 billion. The transaction will result in closer cooperation between the largest insurance group and the second largest bank in Poland. It will enable the creation of shareholder value through synergies eg through the distribution of PZU insurance products through the Pekao network. It is also an important step in the progressive consolidation of the Polish banking sector.

The agreement to acquire a significant block of shares of Bank Pekao was concluded between PZU and PFR and UniCredit S.p.A. on December 8, 2016. PZU and PFR consortium buys 32.8% of Pekao S.A. For a total of 10.6 billion zlotys. The transaction is scheduled to be finalized at the end of the second quarter of 2017.

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